Skipton Lifetime ISA - Self build

Grey88

Hi, struggling to find answers anywhere else on this.

Whilst I know the LISA can be used toward a self build I am however having another issue.

Skipton have told me I need to have the build completed 3-6months from the date I receive the money. I can see why this makes sense if you are purchasing a home. In a self build scenario the average build takes 18months, this would mean waiting until 1yr into the build before requesting the money. This leads to cashflow difficulties as it would be needed sooner rather than later.

Skipton have been fairly unhelpful citing it's a HMRC scheme and their rules. Yet they couldn't link me to where these rules are written.

Giving it's a scheme supposed to help people it seems very rigid and inflexible to the nature of a self build and those who are using it for that purpose.

Any other self builders out there encountered the same problem or have any solutions?

Thanks

isasmurf

I've no experience of LISAs or self build but as you've not had a response I'll give you my thoughts. 

The period 3-6 months is the period in which money can be returned to the Lisa if the purchase fails. I'm speculating but it seems to me like Skipton are saying you cannot complete the purchase to a legal right of land for the purposes of the LISA until the property is built and can be occupied as your sole or main residence. The regulations though only require on completion of purchase where a property is being constructed that it is your intention to use the land as your sole or main residence and that you will do so as soon as the property is suitable for such use. It seems to me that Skipton have misinterpreted the rules.

I think your options are 
1. Ask HMRC by calling them or asking on their community forum
2. Get your conveyancer involved
3. Make a complaint 

Grey88

Hey, thanks for the reply. Yea hoping Skipton have misinterpreted it. Waiting on a call back from them.